HOW HAS THE CONSTITUTION SHAPED THE ECONOMIC
SYSTEM IN THE UNITED STATES? © National Council on Economic Education, New
York, NY Civics and Government: Focus on Economics, Unit 1, Lesson 1
Lesson Description
Students provide their own examples of the six characteristics of a
market economy as they exist in the United States today. Then they see how
the U.S. Constitution supports those characteristics by reading relevant
portions of the Constitution, and matching these provisions with the six
characteristics of a market economy. The lesson concludes by having the
students read and discuss relevant portions of the Constitution of the
People's Republic of China. They then write essays contrasting the impact
of the economic provisions of the two constitutions on the characteristics
of each nation's economy.
Introduction
Constitutions are economic documents as well as political documents.
This is certainly true of the Constitution of the United States. Our
nation's founders believed that economic freedom as well as political
freedom are essential for national prosperity and growth. Accordingly,
they included numerous provisions in the Constitution that support and
encourage the operation of a market economy. Thus, as the basic "law of
the land," the U.S Constitution defines the essential features of our
economy.
Grade Levels
Grades 6-12, all students
Economic Concepts
- Private Property
- Freedom of Enterprise and Choice
- Motive of Self-interest
- Competition
- Markets and Prices
- Limited Role of Government
Content Standards and Benchmarks
National Standard Number: 7 Markets exist when buyers and
sellers interact. This interaction determines market prices and thereby
allocates scarce goods and services.
National Standard Number: 16 There is an economic role, such
as provide for national defense, address environment concerns, protect
property rights, and make market more competitive, for government in a
market economy whenever the benefits of a government policy outweigh its
costs.
Objectives
Students will:
- Describe the six basic characteristics of a market economy
- Identify some provisions of the U.S Constitution that foster and
support a market economy
- Match provisions in the Constitution with the basic characteristics
of a market economy
- Contrast the economic provisions of the U.S. Constitution with the
economic provisions of the Constitution of the People's Republic of
China
Materials (click for a copy)
Time Required
One Period
Procedure
- Distribute copies of Activity 1. Explain the meaning of each
characteristic with an example, and then elicit additional examples from
the class for each characteristic.
- Explain to the class that the U.S. Constitution is an economic
document as well as a political one. Distribute copies of Activity 2.
Discuss the selected excerpts with the class, making sure the students
understand the meaning of each by asking students to put them in their
own terms.
- Distribute copies of Activity 3. Display the transparency of
Activity 3 for discussion and summary purposes. Divide the class into
six groups by market economy characteristics. Have each group discuss
the potential matches and come to a consensus.
- Record the matches on the overhead display, eliciting discussion and
agreement from the class as you do so, and reinforce the idea that the
founders intended to have the Constitution protect and support a market
economy.
- Read to students The Preamble to the Constitution. We the people of
the United States, in order to form a more perfect Union, establish
justice, insure domestic tranquility, provide for the common defense,
promote the general welfare, and secure the blessings of liberty to
ourselves and our posterity, do ordain and establish this Constitution
for the United States of America. Write the phrase "promote the general
welfare" on the chalkboard. Explain how this phrase has been used to
justify government intervention in our market economy, for example:
minimum wage laws, social security, unemployment compensation, and
occupational safety regulations.
Closure
Distribute copies of Activity 4, "Economic Provisions in the
Constitution of The People's Republic of China." After the students have
read the copy, discuss with them how each economic provision in this
document defines the economic role the government in China will play. As
an out-of-class assignment, have each student write an essay explaining
how the differing provisions in the two nation's constitutions can and
have resulted in different types of economic freedoms and systems.
K-5
Lessons 6-12 Lessons
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